GIA Cert Governance & Risk Practice Questions - Governance Institute Of Australia - Certificate In Governance And Risk Management (MCQ Assessment) Exam

Risk appetite is quantitative while risk tolerance is purely qualitative. Risk appetite is set by management while risk tolerance is set by regulators. Risk appetite is the minimum risk required, while risk tolerance is the maximum possible risk. Risk appetite is the broad level of risk an organization accepts, while risk tolerance is the specific variation around targets.